28 November 2011
SWOT Analysis
By Julia
STRENGTHS
Good value/price ratio
Innovation
Market leader
Positive reputation
Swatch-communities
Quality
Durability
WEAKNESSES
Changes of trends
Hard to predict the market
Absence in social media
OPPORTUNITIES
Emerging markets
Global expansion
Innovation in watchmaking
THREATS
High competition
Global economical situation
Low-cost competitors
Identity Prism - Swatch has Character!
By Lisa
Based on the presented theory, a unique identity prism for Swatch can be developed:
Swatch is more than just a colorful plastic wristwatch. The brand has character - a strong identity that is essential for differentiation and customer identification.
But what is brand identity made of?
Kapferer has developed a brand identity prism where he distinguishes a sender and recipient side. In addition, an externalisation and internalisation perspective is included. The 6 identity facets express the tangible and intangible characteristics of the brand and give it a unique legitimacy of values and benefits.
First of all, a brad has physical specificities such as color, form and brand qualities. Physics is the starting point of branding and therefore functions as the brand’s backbone.
A brand has personality, an internal intangible facet. The way in which it speaks of its products o shows what kind of person it would be if it were human.
A brand is a culture. “There is no cult brand without a culture” (Kapferer, 2007, 184). It is the set of values feeding the brand’s inspiration.
A Brand is a relationship. An exterior facet – the way a brand connect to its customers.
A brand is a customer reflection. The target outwards mirror – reflecting the consumer as he or she wishes to be seen as a result of using the brand.
Finally, a brand speaks to our self-image. Reflecting the customer attitude towards the brand. The target internal mirror- customers develop a inner relationship with themselves.
Based on the presented theory, a unique identity prism for Swatch can be developed:
Sources:
Kapferer J.N., 2008, The new strategic brand management, 3. Edition, 182-187
Kapferer J.N., 2008, The new strategic brand management, 3. Edition, 182-187
Joachimthaler ,E., & Aaker, D.A, Havard Business Review, Jan-Feb 1997, http://users.homebase.dk/~kar/Building_brands_without_mass_media.pdf
Brand association
By Julia
As brands get recognized, they also get associated in different aspects. Brands can be associated with qualities, people attitudes and expressions. In the worst case brand are associated with something negative, such as sweat shops, but in the most favorable case a brand is associated with something positive. Brand associations are the images and thoughts you get when you think about the brand. On the other hand, brand associations can appear when you see something or hear something and which brings you back to the brand. Using a catchy song or a distinctive character or celebrity in advertising will bring brand associations.
Nielsen BuzzMetrics’ has created a Brand Association Map (BAM), which is a visual map presenting the key brand dimensions: Competitors, Products, Related Concepts and Brans Attributes. Nielsen can create the map by using conversations online, but we created a map which could be the case for Swatch.
Sources: http://marketingdeviant.com/brand-association/ , Lane Keller, K. 2008. Strategic Brand Management. 3rd Edition. http://www.nielsen-online.com/downloads/us/BAM_US.pdf
13 November 2011
Competitors
By Sarah
Nick Hayek Jr., boss of Swatch, keeps claiming it:
Nick Hayek Jr., boss of Swatch, keeps claiming it:
"Swatch is about provocation"
But Hayek recently decided to reduce the number of Swatch models to 80 from 155 in a bid to cut costs: Analysts say Swatch is hampered by high costs of manufacturing in Switzerland, the strong Swiss franc, and competition with cheap watches from Japan and China.
Switzerland's traditional dominance of the international watchmaking market began in the 1970s. The arrival of digital technology gave rise to a new breed of cheap Asian watches and to a new generation of giant Japan and Hong Kong-based industrial manufacturers. The Swiss market, with its tradition of small, often family-owned firms, and its continued focus on more expensive, labor-intensive mechanical movements, was caught by surprise by the gains made by such brands as Seiko and Citizen, both Japanese.
- A brief company description:
Dedicated to technology advancement and precise manufacture, the Seiko Company has repeatedly staked its reputation on performance, acting as the Official Timer of the Olympic Games in Tokyo, Sapporo, Barcelona, Lillihammer and Nagano.
Seiko's design innovations include the world's first quartz watch."Seiko is renowned for pioneering new sophisticated watch technologies to provide its customers with incredible levels of accuracy as well as a superlative ownership experience." These are the words of Seiko, the manufacturers from Japan.
- Customer insight:
- A brief company description:
During the last 85 years, Citizen has expanded its business and achieved recognition as a global brand. The past 25 years period has coincided with the company's dramatic rise to its current position as the world's largest watchmaker (http://www.citizenwatch.com).
More recently, Citizen has achieved a new position as leader in ecologically friendly timekeeping with its Ecp- Drive collection of light powered watches.
- Customer insight:
But then, why are Swatch watches still so popular? The Swatchers know. These watches are not only stylish and affordable: Swatch watches are Swiss-made and come with Swiss quality movements. The company brings out new designs twice a year, which helps keep the watches unique: with so many styles to choose from, chances are, you won't come across anyone else wearing your watch. You may even be buying a collectible watch. You could buy a Swatch for as little as $60 and find it becoming a collector's item in a few years - Vivienne Westwood designed a few and they are now serious collector's items costing many times what you would have paid for them originally. Swatch watches are for those who want a watch that's affordable, expressive, individualistic and, above all, fun.They express who you are, they suit your personality. And then there is an intangible factor Mr. Hakey would claim:
"Swatch is an icon".
7 November 2011
Swatch The World
The watch market is made of numerous companies producing and/or assembling watches. It has been estimated €26 billions in 2010 with a 5% growth since 2009. Needless to say it is very broad one, with products price varying from €10 quartz mass market watches to €10.000.000 exclusive collection masterpieces! It is highly competitive with hundreds of brands, with cheap or fashion or traditional segments. It has a great longevity throughout the years, thanks to the demand that never declined. Brands also have great longevity with examples of Blancpain (1735), Breguet (1775) or Vacheron Constantin (1755).
We can consider two distinct part of the watch industry, which are the mechanical watches and the quartz watches. We usually consider mechanical watches to be of a higher standard. Switzerland is the first watch producer, with other countries such as France, United States or Japan behind. The watch market is also characterised by the high skills it requires producing, especially for mechanical watches, therefore, creating rel high barriers to entry.
Here is a list of some major players in the watch industry:
Name | Date of creation | Nationality |
A. Lange & Söhne | 1868 | Germany |
Audemars Piguet | 1875 | Switzerland |
Baume et Mercier | 1920 | Switzerland |
Bell & Ross | 1992 | France |
Breguet | 1775 | Switzerland |
Breitling | 1884 | Switzerland |
Casio | 1946 | Japan |
Festina | 1902 | Switzerland |
Hamiltion | 1882 | United States |
Lip | 1867 | France |
Longines | 1832 | Switzerland |
Omega | 1848 | Switzerland |
Orient | 1950 | Japan |
Rolex | 1908 | Great Brittain |
Seiko | 1881 | Japan |
Swatch | 1883 | Switzerland |
Tissot | 1853 | Switzerland |
Customer Types and Segments
By Julia
Identifying a typical customer of Swatch is a real challenge. Swatch products represent high quality and low price at the same time. A typical customer could be seeking for practicality or a trendy statement peace at the same time. The playful and innovative design is appealing to teenagers and younger target groups, but Swatch watches has been seen also replacing a Rolex on beach holiday.
Identifying a typical customer of Swatch is a real challenge. Swatch products represent high quality and low price at the same time. A typical customer could be seeking for practicality or a trendy statement peace at the same time. The playful and innovative design is appealing to teenagers and younger target groups, but Swatch watches has been seen also replacing a Rolex on beach holiday.
We recognize four common consumer market segments: geographic, demographic, psychographic and behavioral segmentation. Geographically speaking, Swatch is global brand and their products are available world wide. When it comes to demographics, the Swatch customers are mainly young and "young in heart". In many families a Swatch watch could be considered as the first watch if a child, when you are still learning how to read a watch. Anyhow, the product range doesn't exclude middle-aged or even senior target groups. Psychographic segment might be the most challenging, but without doubt Swatch fits for customers that value quality, simplicity, practicality and durability. Swatch definitely suits for people who appreciate doing sports and adventures, because the watches can handle splashes and hits. At last but not least, the behavioral segment is based on price sensitivity and customer loyalty. Swatch watches are affordable and offer good value for money. The customers appreciate the possibility to purchase the favorite watch in several colors matching with every outfit. For younger customer, Swatch could be the only brand, but older customers might appreciate also other brands for different occasions.
To wrap up the customer types, an ideal Swatch customer would be young, trendy, fun loving and price savvy person.
Source: www.quickmba.com/marketing/market-segmentation/
Source: www.quickmba.com/marketing/market-segmentation/
Point of Sales
By Julia
Swatch stores are widely spread around the world. As stated at the official website of Swatch, there are actually more than 600 boutiques world wide. Swatch stores are normally rather small, but strategically located. The stores get lots of visitors just because they are available at touristic centers and all major shopping malls.
"Swatch products are available in more than 600 Swatch Stores worldwide. They represent the future of retail: state-of-the-art design in prime inner-city space. Each store - from New York to Paris or Tokyo - is as unique as every Swatch design, and always provides the perfect environment for our products." www.swatch.com
 |
| Swatch Shop in New York |
Most of the Swatch Shops are very young, colorful and striking. In some specific location the Swatch Shops are adapted to more sophisticated surroundings.
 |
| Shanghai, China |
Swatch watches are not only available at their own shops, but also in several major department stores. On top of the boutiques and corners in department stores Swatch is notably represented in airports as well as railway stations. Any significant airport round the globe is most likely selling Swatch, which probably also very common souvenir from trips abroad.
 |
| Beijing, China |
At the moment official Swatch online stores are available in UK, USA, Germany, Sweden, Switcherland, Japan and France. Anyhow, Swatch watches can be bought online through other retailers websites and used in online stores such as eBay. There are also several website for the collectors to buy vintage Swatch watches all around the world.
Sources: www.swatch.com, commons.wikimedia.org, www.go211.com
Sources: www.swatch.com, commons.wikimedia.org, www.go211.com
Frequency & Value: How much & how many?
By Lisa
Swatch an abbreviation for „second watch“- YOU WANT MORE THAN ONE!
Swatch an abbreviation for „second watch“- YOU WANT MORE THAN ONE!
A watch suppose to be a high involvement product with low purchase frequency, but long gone are the time when watches where only worn for functionality and prestige. Nowadays, they are more of a fashion statement. The choice of watch reflects a shade of your personality. As personality traits develop over time so does fashion. So talking about the value and frequency of purchasing a Swatch, it is strongly liked to your own manners.
FASHION MANIACS prefer new fashionable models every other season and like to express their personal mood with the right outfit. Collections being updated at least twice a year, Swatch keeps up with the trend speed. In the variety of assortment you will find the watch that’s just right for you. Starting at 38 Euros with the core collection color code, your personal fashion statement is affordable, each time you feel like a makeover. The SWATCH LOVERS might even desire to own the limited editions. The artist specials and collaborations enable the holder to have a unique and rare distributed watch that underlines the individuality. As extraordinary collections are developed, the price rage can go from 40 up to over 200 Euros. As the trends come and go Swatch provides the desirable products, never the less becoming a status symbol, some Swatches are adorned with jewels and precious stones, finely crafted, a perfect combination of style, affordability and quality for the EASY MATCH CUSTOMER who rather has a timeless, durable model that fits with any outfit. A classic silver model like Irony chrono for women is already available from 75 Euros adding up to 300 Euros for more exclusive models.
To sum up, due to the strong fashion approach of the brand the frequency of buying a Swatch is higher than the average frequency in the product category. Therefore the affordable prices reflect the target group needs perfectly. Lately Swatch succeeded a comeback of CULT STATUS, especially in the pop culture, therefore the value of the brand worth more than its price.
Sources:
www.swatch.com
www.watches.lovetoknow.com/wiki/Swatch_Watch_Value
The Swatch Watch Revolution
By Lisa
Forced by the aggressive growth of Japanese companies in the 1960s and 1970s, Swatch launched a REVOLUTION IN PRODUCT DESIGN as an answer to the crisis. The Swatch management simplified the watches for manufacturing efficiency by reducing the number of components from 91 or more to 51, without losing accuracy and emphasized the emotional design to set them apart from the ordinary digital watches commoditizing the market. The first collection of twelve new slim plastic Swatch models was introduced on March 1, 1983 in Zürich, Switzerland. Since this time, it has gone on to become the MOST SUCCESSFUL WRISTWATCH OF ALL TIMES.
Forced by the aggressive growth of Japanese companies in the 1960s and 1970s, Swatch launched a REVOLUTION IN PRODUCT DESIGN as an answer to the crisis. The Swatch management simplified the watches for manufacturing efficiency by reducing the number of components from 91 or more to 51, without losing accuracy and emphasized the emotional design to set them apart from the ordinary digital watches commoditizing the market. The first collection of twelve new slim plastic Swatch models was introduced on March 1, 1983 in Zürich, Switzerland. Since this time, it has gone on to become the MOST SUCCESSFUL WRISTWATCH OF ALL TIMES.
Alongside the original cult plastic watches, Swatch has diversified its offerings considerably, and the company now sells more than a dozen different types of watches. Scratch-resistant glass, waterproof, trendy designs and colors are all that makes swatch watches in a league of its own. Four major product line families can be identified under the swatch brand:
SWATCH ORIGINALS
The plastic watch, available in various, sizes, shapes, colors and designs
SWATCH IRONY
A diverse collection of metal cased watches for sophisticated casual but classy look
SWATCH SKIN
Divided in sub-families the original Skin and Skin Chronograph. The swatch skin entered the Guiness World Book of Records as the world's thinnest plastic watch. The Swatch Chronograph is the same type of watch but with a chronograph function. It has two additional buttons on the side of the watch
SWATCH BEAT
The digital line featuring the Internet Time (eliminating time zones)
In addition, Swatch offers sports collection such as SNOWPASS (a watch with a built-in access control function which can be used as a ski pass) and high-tech series like PAPARAZZI (download news from the Internet). Moreover, special models such as the FLIK-FLACK for children led to the brand popularity today. Describing all Swatch collection of the past and the present goes beyond imagination, especially considering the great amount of ARTIST SPECIALS AND COLLABORATIONS which make Swatch even more unique and thriving. Swatch watches are fashion accessories first and timepieces second, a reason to own more than one.
Sources
Lindwell, W.,& Manacsa, G., 2009. Deconstructing Product Design: Exploring the Form, Function, Usability, Sustainability and Commercial Success of 100 amazing products, P.96
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